Road Accident Fund Crisis Deepens as SCOPA Inquiry Reveals Massive Governance Failures

The Road Accident Fund (RAF) faces its most serious crisis yet as Parliament’s Standing Committee on Public Accounts (SCOPA) prepares to release damning findings from a comprehensive ten-week inquiry. With liabilities approaching R100 billion and annual income of only R50 billion, the fund’s future hangs in the balance.

SCOPA Inquiry Uncovers Shocking Mismanagement

The parliamentary investigation has revealed systematic failures that have crippled the RAF’s ability to serve accident victims:

• Audit Collapse: From clean audits in 2019/20 to disclaimers and adverse opinions through 2024/25
• R15.7 Billion in Default Judgments: Caused by canceling attorney panels without replacement
• R20 Million Litigation Costs: Wasted on legal battles with the Auditor-General
• Claim Processing Crisis: Direct claims dropped from 35,000 to just 2,000 annually

New Claim Form Creates Barriers for the Poor

The controversial RAF 1 claim form requires upfront costs of up to R100,000, effectively blocking poor South Africans from accessing compensation. Despite promises of direct claim options, management actively reduced these pathways.

Fuel Levy Increases Hit Motorists Hard

Budget 2026 announced significant fuel levy increases to fund the struggling RAF:

• General Fuel Levy: +9c/l petrol, +8c/l diesel
• RAF Levy: +7c/l to R2.25/l from April 2026
• Total impact: R1.30/l additional cost for motorists

Ongoing Investigations and Reform Proposals

The Special Investigation Unit continues probing fraud allegations while new legislation proposes a no-fault compensation system with monthly payments instead of lump sums.

What’s Next?

SCOPA’s final report, expected by end-February 2026, will include recommendations for comprehensive reform. The crisis affects millions of South Africans through higher fuel costs, delayed claims, and potential taxpayer bailouts.

The RAF’s R100 billion liability gap represents more than financial mismanagement – it’s a failure of a system meant to protect South Africa’s most vulnerable road accident victims.